News View Non-AMP

Terra Community litigation Fund To Be Released Soon!

Written by: Elena R

May 26, 2022

The spectacular collapse of Terra’s UST stablecoin lost its $1 price peg. which has also triggered the price of the backing LUNA token. overall $60 billion disappeared, leaving the investors devastated as a result. 

The blame was on the fragile algorithmic stablecoin pegging mechanism initially, but the allegations have emerged that foul play was at hand. Further, the effect of the scandal on social media has been catastrophic and the victims suffering mental health issues as well as self-harm and suicide attempts of victims have been reported. 

In response to this FatManTerra tweeted the details of a community litigation fund aimed to compensate the victims of the Terra Scandal. He further clarified that he would not promote or share the link due to red flags.

During a bid to compensate victims, FatManTerra spoke of a community litigation fund touted as ” the perfect solution”, and a cheaper “ready-made” option. The funds will be transformed into the form of a Decentralized Autonomous Organization (DAO), and supporters of the cause can contribute with DAOs. Which will result in the form of voting rights in the decision-making process for the donors. 

FatManTerra by responding to the doubts said that the funds would be held in a multi-sig wallet where the transactions need to be authorized by three individuals. And he had also assured the public by mentioning the involvement of a public figure, a lawyer, in the deal. 

There comes a twist, as FatManTerra questions DAO on its redistribution of half of the donations only to the community. Why not 100%, he also questions the DAO’s centralization as well in addition. 

In addition to this FatManTerra also claims DAO for getting the donations from donors and returning back to them, “donations won’t expect returns”.

He also added that he was pressured to promote DAO for which he took time and refused to cave as there were too many red flags, he admires his decision, he said. 

This further seems like a shady attempt to profit from the crisis of Terra, his exposure has led him to “high profile law firms” and “litigation funders”.

FatManTerra has been in contact with Three law firms, have put up $15 million, and agreed to work on a contingency fee basis, which means a fixed percentage has to be paid if the case wins. Negotiations are also taking place to get the best possible deal for victims.

Elena R

Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.

Recent Posts

Bitwells Offer 777 BTCs Help You Enlarge Your Crypto Trading Profit

To facilitate crypto trading and help traders earn more cryptocurrency, leading crypto derivatives exchange Bitwells…

July 4, 2022

Indian Crypto Exchanges Severely Hit By Regulators, Trading Volume Plunge By 90% !

During this crypto-winter, worldwide crypto traders have undergone significant losses. The situation is grim, as…

July 4, 2022

Polygon(MATIC) Price Primed to Undergo A Short-Lived Rally to Hit $0.5! What’s Next?

Polygon (MATIC) price since the early trading hours has gained significant bullish momentum and is…

July 4, 2022

Crypto Lending Firm Vauld Suspends Transactions After $198 Million Worth of Withdrawals

As it considers restructuring options, Singapore-based cryptocurrency lender Vauld has suspended all deposits, trading, and…

July 4, 2022

Will Tether (USDT) Be Able To Prove Its Stability Amid Investor Abandonment?

Tether (USDT) 's claim that it can sustain market-wide withdrawal is not doing well among…

July 4, 2022

Will Cardano’s Vasil Hard Fork be Deployed On Mainnet in the Next 4 Weeks?

Cardano, with its regular improvements, has been making progress that way. According to the Input-Output…

July 4, 2022